According to a research report released by Orient Securities, the frequent strategic moves by multinational corporations (MNCs) validate the immense commercial value of extrahepatic delivery technologies and are driving their expansion from liver diseases to a wider range of therapeutic areas. Domestic companies have rapidly positioned themselves in multi-target drugs and extrahepatic delivery platforms, potentially accelerating the release of their latent clinical value. As the clinical value of domestic small nucleic acid drugs is progressively validated, coupled with MNCs' urgent demand for next-generation innovative technologies, a continuous stream of business development (BD) transactions in China's small nucleic acid sector is anticipated in the future. The main viewpoints of Orient Securities are as follows: Frequent small nucleic acid transactions indicate rising global recognition for domestic drugs. Recently, Shengene Biopharma has secured multiple BD deals: on November 8, 2025, it entered a strategic collaboration with metabolic disease giant Eli Lilly, receiving an upfront payment, equity investment, and potential milestone payments of up to $1.2 billion; on February 2, 2026, Shengene Biopharma partnered with Roche's Genentech, granting an exclusive global license for an RNAi drug and receiving a $200 million upfront payment along with $1.5 billion in milestone payments. Furthermore, Roche recently collaborated with Manifold Bio on a brain-penetrant delivery technology, involving total clinical and commercial milestones exceeding $2 billion. This series of collaborations not only accelerates the globalization of domestic innovative pipelines but also reflects MNCs' high recognition of core technology platforms. MNCs are accelerating their deployment of next-generation delivery platforms, moving from "liver validation" to "multi-tissue expansion." While liver-targeted delivery technology is relatively mature and competition is intensifying, multinational pharmaceutical companies are shifting their strategic focus to extrahepatic delivery technologies, securing next-generation core assets through internal R&D or external partnerships. Key extrahepatic tissues include fat, muscle, the central nervous system, heart, and kidneys; overcoming the delivery challenges for these critical tissues could enable small nucleic acid drugs to address vast unmet clinical needs. For instance, Shengene Biopharma's LEAD platform has developed delivery systems targeting adipose tissue, skeletal muscle, and macrophages, applicable for treating obesity and metabolic diseases; Ribo Bio's RiboPepSTARTM platform enables targeted delivery to various tissues such as the kidneys, central nervous system, fat, and muscle; the brain-penetrant delivery technology backed by Roche further expands the potential application of RNAi therapies in central nervous system disorders. The firm believes that small nucleic acid therapies are no longer confined to rare and metabolic diseases; breakthroughs in delivery technology are enabling a systematic entry into more scalable application scenarios, offering tremendous commercial value. This year marks a "breakthrough" for small nucleic acids, with Chinese innovative drugs expected to become core transactional assets. Orient Securities contends that domestic small nucleic acid drugs possess distinct advantages. Currently, Chinese companies have accumulated substantial experience in the chemical modification of small nucleic acid drugs and liver-targeted delivery technologies, with pipelines covering high-value areas such as hyperlipidemia, hypertension, hepatitis B, and weight loss. Simultaneously, domestic firms are actively developing extrahepatic delivery platforms and multi-target small nucleic acid drug platforms, positioning themselves at the global forefront in terms of pipeline volume and clinical advancement speed, which are key attractions for MNCs. As the clinical value of domestic small nucleic acid drugs is gradually confirmed, and given MNCs' pressing need for new-generation innovative technologies, a steady emergence of BD transactions in China's small nucleic acid field is projected ahead. Investment recommendations and relevant investment targets include: Yuekang Pharma, Frontier Biotech, Fuyuan Pharmaceutical, HitGen, Hotgen Biotech, Bebetter Bio, Ribo Bio, Hengrui Pharmaceuticals, Innovent Biologics, CSPC Pharmaceutical Group, Salubris, Sino Biopharmaceutical, and Sunshine Guojian. Risk warnings: 1. If subsequent critical clinical data readouts for small nucleic acid drugs fall short of expectations, it could adversely impact the commercial value of these products. 2. If the clinical expansion or data for extrahepatic delivery technologies underperform expectations, it may negatively affect the overall market potential for small nucleic acids.